The growth in this market is mainly attributed to the growing awareness about the benefits of natural food colors, increasing awareness for clean-label products, growing need to enhance product appeal, growing R&D activities in the food industry, and rising use of microencapsulation technology.

Based on type, the carmine segment was the largest segment of the overall natural food colors market in 2019 and the dominance of this segment is projected to continue during the forecast period. The large share of this segment is mainly attributed to the growing demand for carmine from food and beverage industry, due to its wide range of applications in food products such as cake icings, hardy candy, bakery products, ice cream, yogurt, gelatin desserts, fruit syrups, and jam preserves owing to its unique red color. However, the spirulina natural food color segment is expected to grow with the fastest CAGR during the forecast period, owing to the growing health & wellness trends, and rising demand for natural blue and green shades from beverages and confectionery manufacturers.

Based on application, the beverages application segment is projected to grow with the fastest CAGR during the forecast period. This is primarily attributed to the growing need for natural food colors to improve the energy-nutrient ratio in the beverages. Moreover, growing consumer awareness regarding the harmful effects of artificial additives is further supporting the demand for natural colorants in beverages.

Geographically, the Europe region commanded the largest share of the global natural food colors market in 2019. However, Asia-Pacific region is expected to witness rapid growth during the forecast period. The rapid growth of this region is mainly driven by the increasing consumer preference for natural ingredients, rising consumer awareness regarding the negative effects of synthetic colorants coupled with the growth in the spending abilities of the consumers, and strong growth in the F&B industry. Also, rising government regulations on the restricted use of synthetic colors is expected to support the growth of the natural food colors market in the region.